Solar sector attracts $2.37 bn funding in Jan-Mar: Mercom

NEW DELHI: Solar sector attracted $2.37 billion ( 12,912 crore) funding globally through 73 deals, including four Indian transactions in the first three months of this year, says a report.

According to the Mercom Capital Group's funding and M&A activity report for solar sector, there was a dip of 71% in total funding on quarter-on-quarter basis. In the fourth quarter of 2012 the sector completed deals worth $8.2 billion ( 44,680 crore) by way of 69 transactions.

The report analysed funding on the basis of four categories: project funding, VC funding, debt funding and others.

According to the clean energy communications and consulting firm, there were four Indian deals in Q1, 2013 including Welspun Energy, a solar project developer which received $161 million in project funding from Central Bank of IndiaBSE -0.38 %for its 130 mw solar project in Madhya Pradesh.

Among other Indian transactions, Sai Maithili Power, the solar project development company formed by power projects developer KSK Energy VenturesBSE 1.17 % received $9 million in project funding from Export-Import Bank of the US for its 11.6 mw solar project in Rajasthan.

Simpa Networks, a distributed energy solutions provider received $2 million in VC funding from Asian Development Bank and HHV Solar, a manufacturer of solar PV panels, received $3.9 million in equity investment from Swelect, a provider of solar products and project developer were the other two notable Indian transactions.

Meanwhile, the global venture capital funding declined to $126 million in 26 deals in Q1 2013, compared to $220 million in 27 deals in the previous quarter.

"Downstream solar power companies received the most VC funding of all categories this quarter," Mercom Capital Group CEO Raj Prabhu said.